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Six Overlooked Deductions
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- Category: Columnnist Blog
- Created on Thursday, 14 April 2011 18:08
- Written by Steel Rose CPA
CPA Tax News Today, April 14th, from CPA Magazine
Today the Wall Street Journal reminds us of six overlooked deductions.
Although on Charitable donations Donors may not deduct time, they may deduct expenses for mileage or uniforms. Board members or chosen representatives also may deduct unreimbursed expenses for attending a conference or meeting. Also, Employees who give to charities with payroll deductions at work may forget to include them on their 1040.
For 2010 only, taxpayers who are self-employed and have deductible health-insurance premiums may also deduct them against Social Security taxes on Schedule SE. For 2010 and after, these same taxpayers may deduct premiums for a child under age 27 at the end of the year, even if the child isn't a dependent for tax purposes.
The Sales-tax deduction in lieu of income taxes which was extended through 2011, allows itemized deductions for state and local sales tax instead of state and local income taxes. Taking this is a no-brainer in states without an income tax, and it may work for others if state income taxes are relatively low but a taxpayer had big-ticket purchases such as a car, boat or an engagement ring.
Taxpayers who moved more than 50 miles for work and stayed employed may deduct reasonable moving expenses and No itemization is necessary.
And finally the Domestic Production Deduction which can be claimed by sole proprietors, partnerships and corporations or even farmers is easy to miss, because no checks are written and tax-prep software may be unaware of it. The deduction is availablefor a range of production activities performed in the U.S. in mining; oil extraction; farming; production of software, recordings, films; construction of real property and related architectural or engineering services.
That sums up the CPA Tax news for today. Thanks for reading CPA Magazine and have a great day.